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Spouses living in different states for part of year, with one spouse also working in another state for part of year

jcmayer3 — Sat, 08 Feb 2020 22:07:14 GMT

To start the year, both my spouse and I lived and worked in Michigan. In July, my spouse moved to DC and was both living and working there for half the year. How should we file the DC return as I never lived there, but spouse lived there for half the year and we prefer to file jointly for Federal return.

Re: Spouses living in different states for part of year, with one spouse also working in another ...

MaryK4 — Sat, 08 Feb 2020 23:18:30 GMT

Your spouse can file a Part Year DC Married filing separate on the same return. For your dates of residency, leave blank. You will be able to use the federal tax return but allocate the income and deductions to reflect only her DC income and deductions.

Re: Spouses living in different states for part of year, with one spouse also working in another ...

jcmayer3 — Sun, 09 Feb 2020 17:58:45 GMT

For our overall returns I am listed as the 'taxpayer' and my spouse as the 'spouse/partner'. For the DC return, would it be ok to leave it like this or should it be reversed as my spouse was the one residing and working there?

Re: Spouses living in different states for part of year, with one spouse also working in another ...

pk — Sun, 09 Feb 2020 18:12:39 GMT

@jcmayer3 , before you run and dive into following @MaryK4 advice to file as MFS ( for your spouse ) -- I generally would agree with her advice but with some pre-work.

(a) Please read through this from Washington DC DOR --> https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2019%20D-40_Booklet.pdf

(b) since you would have to buy DC state software anyways, consider preparing the return both ways ( MFJ ) and MFS, with allocating only spousal Washington DC income to be taxed by Washington. This shoud allow you to make an informed decison

(c) Note that unless your spouse has officially given up MI residency ( driver's license, voter reg, home etc. etc. ) Michigan would still expect the earlier residency still valid ( despite temporary sojourn in another state ), will tax world income ( based on federal AGI ) and then give credit for any taxes paid to Washington DC.

There is more here than meets the eye and mostly depends on your longer term plan

If you have more on this please feel welcome to add comments and I will come back and clarify